The US Department of Energy (DOE) has unveiled a significant move to accelerate the growth of domestic manufacturing of electric heat pumps.
The DOE announced the availability of $63m funding aimed at ramping up the production of residential heat pumps, heat pump water heaters, and other related systems and components.
This investment, facilitated through President Biden’s Inflation Reduction Act, utilises the authority granted by the Defense Production Act (DPA) to address climate change and reduce reliance on fossil fuels.
It’s estimated that electric heat pumps could produce more than half of current heating emissions, a major step in the US’ journey to net zero emissions.
The announcement is the latest in an array of clean energy projects, with the DOE recently announcing sizeable funding for geothermal energy.
Building on prior success
This funding opportunity builds upon the momentum of a previous investment round in November 2023, which saw $169m allocated to manufacturers of heat pumps and related components.
Electric heat pumps, which play a pivotal role in reducing energy costs for households, decreasing reliance on fossil fuels, enhancing national security, and combatting the climate crisis, are at the forefront of this initiative.
What are the environmental benefits of electric heat pumps?
Heat pumps offer efficient heating and cooling solutions while significantly lowering greenhouse gas emissions.
By transferring heat rather than generating it, these systems provide comfortable indoor temperatures across diverse climates, particularly in well-insulated homes.
Electric heat pumps are poised to reduce emissions by up to 50% compared to the most efficient gas boilers, with the potential for a 75% reduction by 2030.
Furthermore, heat pump water heaters exhibit two to three times greater energy efficiency than conventional electric water heaters, promising substantial energy savings for consumers.
Creating skilled jobs
Recognising the need to support the clean energy workforce, the funding opportunity encourages proposals aimed at developing the necessary workforce to meet the demands of expanding manufacturing facilities.
Moreover, this initiative aligns with the US’ Justice40 Initiative, which prioritises directing benefits from federal climate and clean energy investments to disadvantaged communities disproportionately affected by pollution and underinvestment.
Jennifer Granholm, the US Secretary of Energy, commented: “As part of the Biden-Harris Administration’s commitment to addressing the climate crisis, these Defense Production Act dollars will further amp up domestic heat pump manufacturing to meet increasing consumer excitement, reduce emissions, and create clean energy jobs across the country.
“President Biden’s Investing in America agenda is working – it’s not only making heating and cooling technology more accessible, but it’s also growing high-quality job options for workers in underserved communities and helping supercharge America’s clean energy economy.”
With this latest investment, the administration reaffirms its dedication to combating climate change, fostering economic resilience, and promoting equity across communities.
